Typed plz and asap please provide me a quality solution for this question and take care of plagiarism also PLEASE SHOW WORK: Question 1 Consider an economy with 10,000 individuals. Of them, 5,000 each earn $25,000;3,000 each earn $40,000; and 2,000 each earn $100,000. a. What is the Gini coefficient for this economy? b. Whatwould the Gini coefficient be if the wealthiest 2,000 individuals were taxed 30% of their income, with the proceeds beingdistributed equally to the 5,000 poorest individuals?JcQuestion 1Consider an economy with 10,000 individuals. Of them, 5,000 each earn $25,000; 3,000 eachearn $40,000; and 2,000 each earn $100,000.a. What is the Gini coefficient for this economy?b. What would the Gini coefficient be if the wealthiest 2,000 individuals were taxed 30% oftheir income, with the proceeds being distributed equally to the 5,000 poorestindividuals?

The Gini coefficient is widely used to determine the deviation of income or wealth among the given…

Answered: PLEASE SHOW WORK: Question 1 Consider…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter12: Income Distribution, Poverty, And Discrimination

Section: Chapter Questions

Problem 17SQ

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Similar questions

Here is one hypothesis: A well-funded social safety net can increase economic equality but will reduce economic output. Explain why this might be so, and sketch a production possibility curve that shows this tradeoff.
Consider an economy with the following income distribution: each person in the bottom quartile of the income distribution earns $15,000; each person in the middle two quartiles earns $40,000; and each person in the top quartile of the income distribution earns $100,000.a. What is the Gini coefficient associated with this income distribution?b. Suppose the bottom quartile pays no taxes, the middle two quartiles pay 10 percent of its income in taxes, and the top quartile pays 28 percent of its income in taxes. Two-thirds of all tax money is redistributed equally to all citizens in the form of military defense, government pensions (social security), roads/highways, and so on. The remaining one-third of tax money is distributed entirely to the poorest quartile. What is the Gini coefficient associated with this redistribution plan?Would you consider this tax and redistribution plan to be a particularly aggressive income redistribution policy?
In a society with 240,000 households, 10,000 households earn $4 each, 4,000 households earn $2 each, 10,000 households earn $10 each, and the rest earn $1 each.What is the income share of the third quintile? (Not the cumulative income share, just the share of that quintile.) Please write down the answer with two decimal points in percentage form without the % sign. XX.xx, NOT XX.xx%
In season three of the TV show “The West Wing,”the federal government considers redefining thenational poverty measure in a way that wouldclassify an additional 4 million people as poor.The president worries that his administration willbe criticized for leading the country into greaterpoverty. Explain whether this change would havereflected a shift in an absolute measure of poverty,a relative measure of poverty, or whether it cannot be known. Finally, explain why all else equal,the president is not responsible for causing greaterpoverty
, draw the lorenze curce and find the Gini coefficient for each area, using Excel. Explain how the income inequality level can be improved.
World Bank data show that in 1995, the poorest 20% of households accounted for 7.5% of household income in Niger, the next 20% of households accounted for 11.8% of income, the middle 20% accounted for 15.5% of income, the second richest 20% accounted for 21.1% of income, and the top 20% accounted for 44.1% of income. What was the cumulative income share of the bottom 60% of households in Niger? 2. Draw a Lorenz curve and calculate the Gini coefficient for Niger.
Evaluate a wealth tax. Do you think it is a feasible policy response to rising wealth and income inequality given what you know about the r > g relationship? What other problems or strengths do you think a wealth tax would have? Should wealth be taxed at all?
Which one of the following is the most likely to be associated with an increase in the incidence of poverty? A) The Gini coefficient falls substantially. B) The number of single persons with children and of single pensioners has increased substantially. C) The real income of those in the top 20% of income earners falls by 10%. D) The number of people earning below the level of income support has decreased.
What is a Gini coefficient and how is it measured? In addiition to this, true or false and explain: when income inequality rises, the Gini coefficient goes down?
Explain how the Gini coefficient is derived from the Lorenz curve by making use of the graph provided;
To combat income inequality and to generate increased tax revenues to fund expenditures, government officials decide to aggressively increase how progressive income taxes are, so much so that the top income earners are marginally taxed 90% of their income (and while this marginal tax rate may seem oppressive, these top income earners still have more than enough income to satisfy all of their needs and all but the most extravagant of wants - basically, these earners have more than enough money). Argue why this tax policy is a fair approach to fund government expenditures. Why might this tax policy fail to achieve its objectives (tax revenues would actually decline as a result)?
You have been provided with the following statement: “According to the World Bank, South Africa remains a dual economy with one of the highest inequality rates in the world, with a Gini Coefficient of 0.643.” address in depth in your brief: A good, understandable definition of the Gini Coefficient. Indicate the significance of the South African Gini coefficient in relation to Gini coefficient ranges associated with equal and unequal income distributions; • Explain how the Gini coefficient is derived from the Lorenz curve by making use of the graph provided;

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